What option is available in Illinois for a mortgagor wishing to cure a default?

In Illinois, a mortgagor who wishes to cure a default has the option of reinstatement of the loan. This process allows the borrower to bring the loan current by paying the overdue amounts, including any late fees and costs incurred by the lender due to the default, thus stopping foreclosure proceedings. Reinstatement is often viewed as a beneficial option because it allows the borrower to keep their home and continue making regular payments on the mortgage.

In contrast, a short sale involves the sale of the property for less than what is owed on the mortgage, thus, it does not directly cure a default but rather addresses the financial hardship by selling the property. A loan modification refers to changing the terms of the loan to make it more manageable—this might include extending the term or reducing the interest rate, which could potentially help avoid future defaults. Foreclosure is the legal process by which a lender seeks to recover the amount owed on a defaulted loan by forcing the sale of the property, which represents the opposite of curing a default. These terms clarify why reinstatement is the appropriate choice for a mortgagor looking to resolve a default situation.